The total cost for a production plant that supplies hydrogen to the refining industry is estimated at $55.4 million. The equipment is expected to cost $17.8 million. (a) What is the overall cost factor for this type of plant? (b) What is included in the cost factor that you determined?
What will be an ideal response?
(a) h = 55.4/17.8 = 3.11
(b) h is a multiplier that accounts for costs such as construction, maintenance, labor,
materials and all indirect components.
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